ALASKA STATE LEGISLATURE  HOUSE LABOR AND COMMERCE STANDING COMMITTEE  May 5, 2025 3:18 p.m. MEMBERS PRESENT Representative Zack Fields, Co-Chair Representative Carolyn Hall, Co-Chair Representative Ashley Carrick Representative Robyn Niayuq Burke Representative Dan Saddler Representative Julie Coulombe Representative David Nelson MEMBERS ABSENT  All members present COMMITTEE CALENDAR  HOUSE BILL NO. 182 "An Act relating to live music and entertainment at breweries, wineries, and distilleries." - MOVED HB 182 OUT OF COMMITTEE HOUSE BILL NO. 173 "An Act relating to occupational therapist licensure; relating to occupational therapy assistant licensure; and relating to an occupational therapist licensure compact." - MOVED CSHB 173(L&C) OUT OF COMMITTEE HOUSE BILL NO. 149 "An Act relating to pharmacy benefits managers; relating to third-party administrators; and providing for an effective date." - MOVED HB 149 OUT OF COMMITTEE COMMITTEE SUBSTITUTE FOR SS FOR SENATE BILL NO. 54(FIN) "An Act relating to registered interior designers and interior design; relating to project costs for the construction, enlargement, or improvement of airports; extending the termination date of the State Board of Registration for Architects, Engineers, and Land Surveyors; relating to the State Board of Registration for Architects, Engineers, and Land Surveyors; establishing requirements for the practice of registered interior design; relating to the practice of architecture, engineering, land surveying, landscape architecture, and registered interior design; relating to the scope of the certification requirements for architects, engineers, land surveyors, landscape architects, and registered interior designers; relating to immunity for design professionals; relating to the cost of construction for recreation centers; relating to liens for labor or materials furnished; relating to the procurement of landscape architectural and interior design services; relating to the cost of construction of safe water and hygienic sewage disposal facilities in villages; and providing for an effective date." - BILL HEARING CANCELED PREVIOUS COMMITTEE ACTION  BILL: HB 182 SHORT TITLE: ALCOHOL LICENSE: LIVE MUSIC/ENTERTAINMENT SPONSOR(s): REPRESENTATIVE(s) HOLLAND 04/11/25 (H) READ THE FIRST TIME - REFERRALS 04/11/25 (H) L&C 04/30/25 (H) L&C AT 3:15 PM BARNES 124 04/30/25 (H) Heard & Held 04/30/25 (H) MINUTE(L&C) 05/05/25 (H) L&C AT 3:15 PM BARNES 124 BILL: HB 173 SHORT TITLE: OCCUPATIONAL THERAPY LICENSURE COMPACT SPONSOR(s): REPRESENTATIVE(s) JIMMIE 04/07/25 (H) READ THE FIRST TIME - REFERRALS 04/07/25 (H) L&C, FIN 04/30/25 (H) L&C AT 3:15 PM BARNES 124 04/30/25 (H) Heard & Held 04/30/25 (H) MINUTE(L&C) 05/05/25 (H) L&C AT 3:15 PM BARNES 124 BILL: HB 149 SHORT TITLE: PHARMACY BENEFITS MANAGER;3RD PARTY ADMIN SPONSOR(s): LABOR & COMMERCE 03/21/25 (H) READ THE FIRST TIME - REFERRALS 03/21/25 (H) L&C, HSS 03/26/25 (H) L&C AT 3:15 PM BARNES 124 03/26/25 (H) 03/31/25 (H) L&C AT 3:15 PM BARNES 124 03/31/25 (H) Heard & Held 03/31/25 (H) MINUTE(L&C) 05/05/25 (H) L&C AT 3:15 PM BARNES 124 WITNESS REGISTER JOHN BLASCO, Chief Operating Officer/Part Owner Anchorage Distillery/Harbor Mountain Brewing Juneau, Alaska POSITION STATEMENT: Testified in support of HB 182. SKYE STEKOLL, Co-Owner Forbidden Peak Brewery Juneau, Alaska POSITION STATEMENT: Testified in support of HB 182. JOSH HEGNA, Co-Founder Girdwood Brewing Company Girdwood, Alaska POSITION STATEMENT: Testified in support of HB 182. CAMERON EBERSOLD, Staff Representative Ky Holland Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered questions on behalf of Representative Holland, prime sponsor of HB 182. REPRESENTATIVE KY HOLLAND Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor of HB 182, gave closing remarks. TORI DAUGHTERY, Member State Physical Therapy & Occupational Therapy Board Juneau, Alaska POSITION STATEMENT: Testified in support of HB 173. ERIN BRENNAN FLORES, representing self Cordova, Alaska POSITION STATEMENT: Testified in support of HB 173. KATIE JOHNSON, representing self Ninilchik, Alaska POSITION STATEMENT: Testified in support of HB 173. DANIELLE KELLER, Board Member Alaska Occupational Therapy Association Anchorage, Alaska POSITION STATEMENT: Testified in support of HB 173. CARY MORRE, representing self Eagle River, Alaska POSITION STATEMENT: Testified in support of HB 173. REPRESENTATIVE NELLIE JIMMIE Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor of HB 173, gave closing remarks. KEENAN MILLER, Staff Representative Nellie Jimmie Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered questions during the hearing on HB 173 on behalf of Representative Jimmie, prime sponsor. GLENN SAVIERS, Deputy Director Division of Corporations, Business, & Professional Licensing, Department of Commerce, Community, and Economic Development Juneau, Alaska POSITION STATEMENT: Answered questions during the hearing on HB 173. ACTION NARRATIVE 3:18:25 PM CO-CHAIR CAROLYN HALL called the House Labor and Commerce Standing Committee meeting to order at 3:18 p.m. Representatives Nelson, Coulombe, Saddler, Burke, Carrick, Hall, and Fields were present at the call to order. HB 182-ALCOHOL LICENSE: LIVE MUSIC/ENTERTAINMENT  3:19:45 PM CO-CHAIR HALL announced that the first order of business would be HOUSE BILL NO. 182, "An Act relating to live music and entertainment at breweries, wineries, and distilleries." 3:20:31 PM CO-CHAIR HALL opened public testimony on HB 182. 3:21:01 PM JOHN BLASCO, Chief Operating Officer/Part Owner, Anchorage Distillery/Harbor Mountain Brewing, testified in support of HB 182. He stated that breweries are allowed four permits per year for live entertainment. He explained that the events must occur on the premises. He asserted that filing an application for local law enforcement and the Alcohol & Marijuana Control Office (AMCO) to approve an event on-premises was "redundant and costly." He offered his support for HB 182. 3:22:18 PM SKYE STEKOLL, Co-Owner, Forbidden Peak Brewery, testified in support of HB 182. He asserted that HB 182 would remove an additional barrier to breweries' four permitted events a year. He stated that eliminating the process would save both time and money and noted that they could pass that saved money along to the artists. He opined that it seemed like an added burden for everyone. He offered his support for HB 182. 3:23:06 PM JOSH HEGNA, Co-Founder, Girdwood Brewing Company, testified in support of HB 182. He described the permitting process, noting that he fills out a form to send to local law enforcement and AMCO, and pays $100 upon approval. He noted that sometimes replies can take weeks. He asserted that the current process places a burden on breweries and local law enforcement. He stated that he has applied for six permits. He offered his strong support for HB 182. 3:24:06 PM REPRESENTATIVE COULOMBE asked why breweries were permitted to host only four events a year. MR. HEGNA replied that constraint was a provision of previous legislation Senate Bill 9 [passed during the Thirty-Second Alaska State Legislature]. 3:24:56 PM CO-CHAIR HALL, after ascertaining that there was no one else who wished to testify, closed public testimony on HB 182. 3:25:19 PM REPRESENTATIVE COULOMBE referred to Section 7 of the proposed legislation, noting that it was repealing the live music and entertainment permit. She asked if that permit existed anywhere else in Alaska Statute (AS). 3:25:52 PM CAMERON EBERSOLD, Staff, Representative Ky Holland, Alaska State Legislature, on behalf of Representative Holland, prime sponsor of HB 182, replied that that section of statute is the entirety of live music and entertainment permitting; it does not exist anywhere else in statute. REPRESENTATIVE COULOMBE asked if the permit being repealed was needed for other events. MR. EBERSOLD noted the section of statute in question contains a variety of permit types. He explained that the permit process was generally for a manufacturer to serve their products off- site at a premise that is otherwise non-licensed. He further explained that the permit related to HB 182 was specifically for a licensed manufacturer to host an event on their premises. 3:27:15 PM CO-CHAIR FIELDS opined that the existing statute is bureaucratic and absurd. 3:27:34 PM REPRESENTATIVE SADDLER asked why only four events and asked if six events a year would be more appropriate. MR. EBERSOLD offered his understanding that the number four was settled on as a compromise with other spaces dedicated to live music. 3:28:10 PM CO-CHAIR FIELDS explained that the number four was important in negotiations when 3:28:31 PM REPRESENTATIVE CARRICK commented there is precedence for four events. She stated that she would also support the buyback of beverage dispensary licenses (BDLs) for a truly open market. She offered her support for HB 182. She asserted that additional duplicative paperwork was nonsensical. 3:29:37 PM REPRESENTATIVE KY HOLLAND, Alaska State Legislature, gave closing remarks as prime sponsor of HB 182. He thanked committee members and noted that the proposed legislation was a collaborative effort with a lot of community involvement. 3:30:08 PM CO-CHAIR FIELDS moved to report HB 182 out of committee with individual recommendations and the accompanying fiscal notes. 3:30:24 PM REPRESENTATIVE SADDLER declared a potential conflict of interest and stated that he does, on occasion, play music in bars and breweries. 3:30:45 PM CO-CHAIR HALL announced that there being no objection, HB 182 was reported out the Standing House Labor & Commerce Committee. 3:31:04 PM The committee took an at-ease from 3:31 p.m. to 3:34 p.m. HB 173-OCCUPATIONAL THERAPY LICENSURE COMPACT  3:34:09 PM CO-CHAIR HALL announced that the next order of business would be HOUSE BILL NO. 173, "An Act relating to occupational therapist licensure; relating to occupational therapy assistant licensure; and relating to an occupational therapist licensure compact." 3:34:39 PM CO-CHAIR HALL opened public testimony on HB 173. 3:34:55 PM TORI DAUGHTERY, Member, State Physical Therapy & Occupational Therapy Board, testified in support of HB 173. She noted that the board reviews and approves applications for both occupational therapy (OT) and physical therapy (PT) licensures. She stated that the board feels confident in its ability to adapt to the changes in the licensing process, including granting compact privileges. She noted that the PT compact has similar language to HB 173 and stated that the board has already navigated most of the necessary procedural changes. She noted that Alaska is experiencing a critical shortage of OTs and asserted the proposed legislation would improve the board's ability to recruit and retain competent and vetted OT providers. She asserted that an increased volume of OT providers in Alaska would result in improved health and rehabilitative outcomes for residents in Alaska with increased access to OTs. She further asserted that an OT compact would reduce administrative burdens and by reducing unnecessary redundancies in processing applications. She explained that, under HB 173, the board could provide licensure privileges to providers outside of Alaska whose homes are established in another state with compact membership. She asserted that the proposed legislation would "increase the workforce needed for Alaskans to access OT services." 3:36:57 PM ERIN BRENNAN FLORES, representing self, testified in support of HB 173. She stated that she is the sole occupational therapist in Cordova, Alaska. She stated that the proposed legislation would increase the availability and accessibility of OT services in Alaska. She reported that, as a former travel therapist, she was familiar with the burdens associated with obtaining new licensure in every state. She stated that the compact would allow the OT profession to flourish in Alaska, and it would reduce the barrier to accessing OT services in small communities like Cordova, Alaska. 3:37:56 PM KATIE JOHNSON, representing self, testified in support of HB 173. She stated that she was an OT and the vice president of the Alaska Occupational Therapy Association. She stated that, because there are not enough OT services in the Kenai Peninsula, there is a long waitlist for service that is infrequent. She stated that many individuals rely on travel OTs which causes a delay in care, as out-of-state travel therapists must obtain licensure before providing care. She asserted that HB 173 would address the issue of waitlists and infrequent care. She offered her full support for HB 173, stating that it would ensure rural Alaska residents receive vital services following illness or injury. 3:38:59 PM DANIELLE KELLER, Board Member, Alaska Occupational Therapy Association, testified in support of HB 173. She stated that she has worked as an OT provider in Anchorage for 13 years. She noted that the waitlist for OT services averaged between 6 and 12 months due to the lack of OT services and providers. She stated that she was in full support of HB 173. She stated that she had personally worked with patients that had to leave their rural villages to receive OT services in Anchorage, Alaska after over a year of delay. She asserted that HB 173 would decrease barriers preventing OTs from coming to work in Alaska. She offered her full support for HB 173. 3:40:06 PM CARY MORRE, representing self, testified in support of HB 173. She stated that she has been a practicing OT for 27 years. She noted that that the University of Alaska Anchorage OT program graduates 12 to 15 OTs a year, far below the projected need for 74 OTs annually. She asserted that the proposed legislation would facilitate expedited licensing for OTs coming to Alaska and it would support the healthcare needs of Alaska residents. 3:41:14 PM CO-CHAIR HALL, after ascertaining that there was no one else who wished to testify, closed public testimony on HB 173. CO-CHAIR HALL entertained amendments. 3:41:26 PM CO-CHAIR FIELDS moved to adopt Amendment [1] to HB 173, labeled 34-LS0810\A.1, Gunther, 5/2/25, which read as follows: Page 3, line 5: Delete "Article 3A" Insert "Article 4A" CO-CHAIR HALL objected for purpose of discussion. CO-CHAIR FIELDS explained that Amendment 1 would correct a drafting error in the proposed legislation by deleting Article 3A and replacing it with Article 4A on line 5 of page 3 of HB 173. 3:41:49 PM The committee took a brief at-ease at 3:41 p.m. 3:42:18 PM CO-CHAIR HALL removed her objection. There being no further objection, Amendment 1 to HB 173 was adopted. 3:42:34 PM REPRESENTATIVE NELLIE JIMMIE, Alaska State Legislature, gave closing remarks as prime sponsor of HB 173. She thanked the committee members and highly encouraged the swift passage of the proposed legislation. She stated that, without action, individuals both urban and rural would suffer from a lack of OT. 3:43:09 PM REPRESENTATIVE COULOMBE noted that all compact bills have a commission requirement, with both fees and appointments related to the compact. She queried the cost. 3:43:53 PM The committee took a brief at-ease at 3:43 p.m. 3:44:02 PM KEENAN MILLER, Staff, Representative Nellie Jimmie, Alaska State Legislature, on behalf of Representative Jimmie, prime sponsor of HB 173, as amended, replied that there was no additional need for funds according to the Department of Commerce, Community, and Economic Development (DCCED), noting that board members typically attend national conferences and pay for the travel costs themselves. REPRESENTATIVE COULOMBE referred to page 18 of HB 173, as amended, citing "The Commission may levy on and collect an annual assessment from each Member State or impose fees on other parties to cover the cost of the operations and activities of the Commission". She questioned how much the state would need to pay to be in the OT compact. 3:45:54 PM MS. DAUGHTERY deferred to Mr. Saviers. She noted that the person appointed to the commission would be an OT appointed to the board. 3:46:42 PM GLENN SAVIERS, Deputy Director, Division of Corporations, Business & Professional Licensing, Department of Commerce, Community, and Economic Development, replied that there would be no fee set for the OT compact. She explained that there was no fee to be a part of the PT compact, which went "live" the prior week. She further explained that there was an option in statute to create a fee if necessary but stated that the board believed that it could absorb the costs because HB 173 would reduce work for the Division of Corporations, Business & Professional Licensing by reducing the number of applications processed by the division. 3:47:31 PM REPRESENTATIVE COULOMBE asked how many states there are in the compact. MR. MILLER replied that there are 32 states currently in the compact pending legislation from Washington, D.C. 3:48:22 PM CO-CHAIR FIELDS moved to report HB [173], as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 173(L&C) was reported out of the House Labor and Commerce Standing Committee. 3:48:50 PM The committee took a brief at-ease from 3:48 p.m. to 3:51 p.m. HB 149-PHARMACY BENEFITS MANAGER;3RD PARTY ADMIN  3:51:53 PM CO-CHAIR HALL announced that the final order of business would be HOUSE BILL NO. 149, "An Act relating to pharmacy benefits managers; relating to third-party administrators; and providing for an effective date." 3:52:28 PM CO-CHAIR FIELDS stated that HB 149 is a "clean-up" bill that would ensure that the Division of Insurance can regulate pharmacy benefit managers (PBMs). He briefly explained that there are PBMs calling themselves third-party administrators. 3:53:28 PM CO-CHAIR HALL entertained a motion. 3:53:30 PM CO-CHAIR FIELDS moved to report HB 149 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 149 was reported out of the House Labor and Commerce Standing Committee. CO-CHAIR HALL set amendment deadlines for various legislation. 3:55:18 PM The committee took a brief at-ease at 3:55 p.m. 3:55:32 PM CO-CHAIR HALL clarified amendment deadlines for various legislation. 3:56:06 PM ADJOURNMENT  There being no further business before the committee, the House Labor and Commerce Standing Committee meeting was adjourned at 3:56 p.m.